.), or do you set your own rates manually?

Sometimes that little adjustment helps your listing stand out when supply is higher.

I adjusted price.

Then still compare those rents to market, because inherited rents can be below or above market.Convert comps into a realistic rent numberTake your comps and group them into three bucketsInferior, similar, superiorAnchor your estimate to the “similar” bucket, then adjust up or down for key drivers like parking, in unit laundry, renovated kitchen, and separate utilities.Use a conservative number for your underwriting, then optionally a “market rent after light rehab” number as a second scenario.Underwrite expenses properly, this is where beginners missAt a minimum includeVacancy, 5 to 8 percent depending on the submarketRepairs and maintenance, often 8 to 12 percent of rent on small multisCapital reserves, another 5 to 10 percentProperty management, 8 to 10 percent even if self managing, so you can compare deals consistentlyTaxes, insuranceWater sewer trash if owner paidLawn and snow if owner paidLandlord paid utilities if anyUse two quick valuation checksRent based checkCap rate or NOI multiple is less reliable on small residential, but it still helps you avoid overpaying based on rent.Sales comp checkCompare to similar duplexes and small multis that sold recently, but the rent numbers are what will decide if the deal works for you.Run the deal through a one page summaryPurchase priceEstimated market rent per unit and totalTotal monthly expenses and NOILoan terms and monthly paymentCash flow after debtCash on cash returnDSCR if you are using DSCR financingI hope this helps.

You need to risk adjust your return based on the above comments. 

My sister did some ARMs on SFHs during Covid and just had 4-5 houses rate adjust in the past 3-4 months and she got absolutely slaughtered on her new rate.

You can book it as:Intercompany receivable (LLC #2)Intercompany payable (LLC #1)That keeps things clean and traceable between both sets of books.4.

From my experience on both the lending side and the investing side, this is how I pre-underwrite small multifamily before I ever see full financials.I adjust the expense ratio instead of defaulting to 50%.

For smaller-to-medium size deals, the more savvy buyers will have a conceptual site plan done by an architect/engineer and will have what we call out here a "pre app" meeting with Planning at the city, to see if there are any initial comments and feedback from Planning (or other city departments) if there are any constraints they see from the out-set that could put downward pressure on the ultimate unit count yield. 

However, Even though the property is in service in 2025, you could still do a cost segregation study in 2026 and make a Section 481(a) adjustment to catch up missed depreciation......